US consumer prices rose 0.6% in September, lifting annual inflation to 3.7% and keeping it well above the Federal Reserve's 2% target. Higher energy and gasoline costs drove much of the increase.
01Summary
- 01The consumer price index rose 0.6% in September and 3.7% from a year earlier, the Bureau of Labor Statistics said.
- 02Core CPI, which excludes food and energy, increased 0.3% on the month and 2.6% year on year.
- 03The energy index climbed 5.2% and gasoline prices jumped 9.1%, accounting for about half the gain in headline CPI.
- 04Food prices were flat in the month, while shelter prices rose 0.4% and used car and truck prices gained 0.7%.
- 05Traders lifted the odds of a Federal Open Market Committee rate hike at its 27-28 October meeting to about 44% after the data.
02Why it matters
The figures show inflation remains sticky and could shape the Federal Reserve's next interest rate decision. Higher fuel costs also feed into household spending and transport costs.
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